Performance bonds for state highway contracts.

Authors: Representative Holli Sullivan

Co-authors: Representative Edmond Soliday

Digest

Provides that, after June 30, 2015, the department of transportation (department) shall require the lowest and best bidder for a state highway contract to submit a performance bond payable to the state not more than 10 days after the contract is let. (Current law requires each bidder for a contract for a project with an estimated cost of more than $200,000 to submit a bid guarantee and a performance bond.) Provides that, if a bidder fails to submit the performance bond within 10 days, the department shall let the contract to the next lowest and best bidder. Provides that a bid guarantee or performance bond must be on forms: (1) specified by the department; or (2) provided by surety companies and approved by the department.